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WH Smith CEO Quits After Deloitte Audit Exposes US Accounting Failures

The retailer signals a profit downgrade with results now scheduled for December 16.

Overview

  • Chief executive Carl Cowling resigned with immediate effect, and UK head Andrew Harrison was appointed interim group CEO.
  • Deloitte’s independent review found insufficient systems and controls for supplier income in North America, inconsistent accounting practices, and weaknesses in the finance team.
  • WH Smith now guides North America profits at £5 million to £15 million and expects group headline trading profit of £100 million to £110 million for the year.
  • The company said the US accounting issue overstated expected profits by around £30 million, though one report cited up to £50 million.
  • Management has launched a remediation plan, is reviewing North America leadership, and has pushed publication of full-year results to December 16.